Brokers said sentiment was upbeat in sync with a rebound in global markets ahead of the important vote for the healthcare bill in the US House of Representatives that could be a pointer to future policies of the Trump administration.

The market sentiments also got a leg up after reports suggested that the government may table GST-related supplementary legislations soon in Parliament.

Bombay Stock Exchange. Reuters

Karthikraj Lakshmanan, Senior Fund Manager Equities, BNP Paribas Mutual Fund said, "After four consecutive days of negative sentiment, stock markets in India traded with some strength today. Benchmark indices opened the day in the green and traded in the positive zone through the day to finally close with gains of over 0.25 percent.

"A host of factors, dominated by a stable, pro-reform government at the Centre, has made India the destination of choice for foreign investors looking to gain exposure to emerging markets."

Vinod Nair, Head of Research, Geojit Financial Services Ltd said, "Market regained some weight from yesterdays fall due to steady global market ahead of a key vote on US health care bill later today. Continued inflow of FIIs to domestic market has given some stability while investors are also looking for fresh triggers for the sustainability of the rally. Bets on corporate results and stability in global market will be the focus for further upside."

After a gap-up opening at 29,201.01 points, the Sensex advanced to hit a high of 29,373.79. However, profit-booking towards the close made it touch a low of 29,198.08 before it settled at 164.48 points, or 0.56 per cent higher, at 29,332.16.

The 30-scrip gauge had lost 481.31 points in the previous three sessions.

The NSE Nifty moved up 55.85 points today to close at 9,086.30.

Indicating an across-the-board buying, all the sectoral indices, except FMCG, ended in the green.